Dollar Unchanged Against Yen, Euro Ahead of Jobs Data, ECB

 
   By Hiroyuki Kachi 
 

        The dollar remained unchanged against the yen and the euro Wednesday in Asia trade, with investors sidelined ahead of key events and data later this week including U.S. jobs data.
        Around 0450 GMT, the dollar was at Y119.75, compared with Y119.69 late Tuesday in New York.
        The euro was at $1.1168 from $1.1175, while the common currency was at Y133.74 from Y133.75.
        With a lack of fresh incentives, the greenback stayed in an extremely tight range against the yen. Currency market participants are paying close attention to U.S. jobs data Friday to get clues regarding the possible timing of when the Federal Reserve will eventually decide to raise interest rates. They are also monitoring the upcoming European Central Bank's policy setting meeting Thursday.
        The Nikkei Stock Average's retreat put downward pressure on the dollar. The benchmark index was down 0.5% at 18717.03 midday.
        Despite the setting out of a path for a higher dollar on an increase in U.S. long-term interest rates, investors still "want another convincing factor" from these events before renewing their upward push, said Marito Ueda, director at FX Prime byGMO.
        The U.S. currency has already encountered resistance around Y120.30-120.50, and with no driving factors on the radar ahead of these events, the pair will likely stay in a tight range, said Mr. Ueda.
        Some position adjustments may take place but the dollar's downside against the yen remains well supported as an appetite for dollar buying on dips remains strong. With the geopolitical situation stabilizing, "there is no need to take risks by selling off the dollar," said Mr. Ueda.
        Shusuke Yamada, chief FX strategist at Merrill Lynch Japan, said the dollar will continue to remain rangebound in the upper half of the Y119-level until the U.S. jobs data.
        While the dollar's broader trading range has been gradually moving upward, a falloff in volatility has lengthened the time needed to break through and stay above the Y120-line. The greenback "won't make a move (against the yen) until the nonfarm payrolls are out" on Friday, he added.
        The WSJ Dollar Index, a measure of the dollar against a basket of major currencies, was up 0.04% at 86.15.
        Write to Hiroyuki Kachi at Hiroyuki.Kachi@wsj.com
        (END) Dow Jones Newswires

        March 04, 2015 00:15 ET (05:15 GMT)

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